5/16/2023 0 Comments Ceo of skype![]() ![]() In 2005, an online e-commerce company eBay acquired Skype Technologies, a European VOIP provider for USD 2.6 Billion. Skype Technologies (the “Skype”) is a technology company that enables a person to make free video and phone calls through a voice over internet protocol (the “VOIP”). Acquiring new technology and expertise.ĮBay is a commerce company founded in 1998 in California, with the aim to connects sellers and buyers around the world through an online platform.The benefits of M&A include, among others: The Synergy Value combines the power or value of the two companies involved in a transaction to leverage the positions of the companies involved. One of the basic reasons behind such transactions is creating an additional value called “Synergy Value” combined with various strategic reasons. M&A are the transactions in which various companies are either consolidated or their ownership is transferred to another company. Therefore, in order to achieve growth, various companies started strengthening their business through inorganic growth strategies. This resulted in a more strategic M&A as no company can expand its business through organic growth by enhancing sales internally and increasing output. Globalization has deeply impacted the business landscape over a few decades. Therefore, this article tries to analysis the failure of the deal between eBay and Skype. However, there have been several cases where M&A deals didn’t work out and the main evil behind such failure is that the companies are unable to meet post-closing integrations, therefore, not able to achieve and ascertain synergies, sustainable growth and value creation, which usually motivates M&A. M&A is also attractively because it can close swiftly and efficiently without much interrupting current operations. Answer to these questions lies behind the underlying synergies, sustainable growth and value creation through these transactions. Have you ever given a thought to, “Why do companies enter into Mergers & Acquisitions (the “M&A”) ? or “What factors influence M&A?”. Considerations for Post M&A Integration.Background of the Deal – eBay and Skype. ![]()
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